@julias.algos: What’s a “Theo”?🧮 Theoretical values give traders a benchmark for what an asset should be worth based on a model rather than simply accepting the current market price. In options trading, models use multiple factors to estimate an option’s theoretical value. Traders can then compare that estimate with the actual market price to identify potential mispricing, manage risk, and decide whether a trade makes sense. The theoretical value isn’t necessarily the “correct” price, as every firm has their own proprietary model that makes different assumptions, but it provides a consistent framework for understanding why something is priced the way it is and where opportunities or risks might exist. #finance #quantfinance #quant #optionstrading #stock

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Friday 02 October 2026 18:28:34 GMT